Check with lender before transferring house title

Updated 11:37 pm, Friday, January 4, 2013

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Business columnist Ronald Lipman

Business columnist Ronald Lipman

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Check with lender before transferring house title

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The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.

Q: My mother moved in with my husband and me nine years ago, and the title to our house is in her name. She would like to transfer the title to me. There is still a balance on the mortgage of about $180,000. Can she give the home to me?

A: Yes, she can give you the home by executing a deed.

The transfer, however, might trigger a due-on-sale clause, meaning her mortgage company would have the right to call her note due. So, before she gives you the home, you and she need to contact the lender who holds the note to find out if your plan is acceptable.

Q: My husband and I have been married for 12 years. He has a daughter from his first marriage. His divorce decree required him to name his daughter as the beneficiary of his life insurance. She was a minor and in school at that time. After we wed, she finished college, got a job, and he changed the beneficiary to me. His daughter is now 35. His ex-wife just found out, and she called us threatening to sue my husband unless he changes the beneficiary back to his daughter. Can she do this?

A: Yes, she can sue, but she probably won't win.

You need to read your husband's divorce decree to see what it says. More likely than not, the decree says that he was required to name his daughter as a beneficiary until she reached age 18, or finished high school, or graduated from college. That is the typical requirement included in many divorce decrees.

It is possible, though, that your husband's decree does require that he name her as a beneficiary for a longer period.

Q: My husband and I would like to put our home in a revocable trust, but we are concerned that we might not be able to get the over-65 homestead exemption in Houston. Do you know if we can still claim the homestead exemption?

A: Yes, you can get the exemption. In my experience, the Harris County Appraisal District has from time to time wanted to see certain language in the trust agreement, but this is language that any experienced estate planner will routinely add to a revocable trust.

Q: My husband and I would like our son, who is 42 and married, to inherit our house in The Woodlands. What steps will we have to take to get this done?

A: You and your husband can each sign a will, stating who inherits the assets you own when you die.